India Considers Ways to Lower Hydropower Tariffs
- Proposals seek to remove some infrastructure costs from tariff
- Infrastructure costs may be shared by federal and state govts
Indian visitors look at water flowing out of Narmada canal from the dam at Karai village of Gandhinagar district, some 30 Kms from Ahmedabad on August 9, 2012.
Photographer: Sam Panthaky/AFP via Getty Images
India is considering lowering tariffs for new hydro-electric power projects to help them compete against cheaper forms of electricity, according to people with knowledge of the matter.
The federal power ministry has proposed excluding the costs of building infrastructure such as roads and bridges from tariffs to make new hydropower projects viable, the people said asking not to be named as the discussions are not public yet. Those costs might be borne by the federal government and the states where the projects are located, the people said, adding that the details haven’t been finalized.